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Preparing a Loan Workout Packet

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by

Olga Kordonskaya

on 28 January 2016

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Transcript of Preparing a Loan Workout Packet

Preparing a Loan Workout Packet Before your Appointment
What you will learn!
RMA and Form 710
Hardship Letter
Finishing RMA and Form 710
Avoid delays and rejections!

Review all documents for completeness and accuracy

Make sure everyone has signed and dated everything

Double check for anything wrong or missing
Standard Loan Workout Packet
Request for Modification and Affidavit (RMA)

Uniform Borrower Assistance Form (Form 710)

Statement of income and expenses

Personal financial documentation
Please start with the packet. http://www.ahclc.org/pdfs/FC_Packet_English.pdf
Hardship Letter: What to Avoid
Long, emotional stories

Details that are not related to your finances

Remember the person is also reading many other letters
Standard Forms
Required Documents
Budget
Attention to details
Information Requested
Household, loan and property information
Select ONE cause for your hardship
Affidavit
All loan holders need to sign and date
Hardship Letter: What to Include
Stick to facts

Key events and impact on finances

Financial details

Reference dates

Edit and be brief
Gather Financial Documentation
Avoiding Pitfalls
Avoid outdated documentation: pay stub, statements

Bank statements: all pages, actual statement not transaction list

Signed tax return and W2s

Provide documents for all borrowers on mortgage

Income
Earned Income
Most recent 60 days of paystubs

Profit and loss statement

Last 2 years of tax returns and W2s

Rental income

Investment income
Public Assistance Income
Public assistance award letters

Unemployment

Social Security

SSI/disability

For Social Security and SSI/disability visit:
Account Statements
Most recent 3 months bank statements

Checking, savings, all accounts

Retirement, pension, annuity

All pages
Divorce and Child Support
Divorce decree

Maintenance award

Child support agreements

Office of the Clerk of the Circuit Court
18 N. County Street
Waukegan, IL 60085

Other proof:
Contribution letter
Proof of receipt
Debt
Credit report

Utility statements from last month
Other Documentation
Homeowners insurance declaration page

Most recent motgage statement

Lender correspondence

Attorney correspondence

Other
Statement of Income and Expenses (Budget)
Monthly Breakdown
Convert paycheck to monthly income figures

Average out part-time work, bonus, commission

Past utility bills

Bank statements

Credit card statements

Track expenses for a few weeks - all expenses
Income
Employment

Child support and maintnence

Public assistance benefits

Pension and retirement

Other (help from family, odd jobs)
Expenses
Housing (PITIA)

Utilities, phone, cable

Transportation

Food and household supplies

Childcare

Medical

Insurance

Entertainment and incidentals

Debt (credit card and loan payments)
Budget Accuracy
Budget should match financial documentation

Need to know what you can truly afford for a modified mortgage payment

Unrealistic or inaccurate budget will cause delays
Final Review of Workout Packet
Organize forms and documents

Verify for completeness

No outdated documents

Signed and dated

Make a copy for your files
Submit to Lender
Counselor, attorney, on your own

Review process takes 30-45 days

Will likely have additional requests for documentation
Homeowner Resources
Community resources

How-to handouts

Apply for Court's counseling and mediation program

Prairie State Legal Services 888-966-7757
19th Judicial Circuit Court, Lake County's
Residential Mortgage Foreclosure Mediation Program

Affordable Housing Corporation of Lake County http://www.ahclc.org/saveyourhome.html

Resolution Systems Institute
RMA: http://www.ct.gov/dob/lib/dob/consumer_help_nonhtml/mtgevent/rma_form.pdf
Form 710: http://www.freddiemac.com/singlefamily/service/docs/form710.pdf
Other Income
Family support

Cash jobs

Remember:
60 days
Written proof
Where to drop off your packet

Libertyville (Monday-Friday 8AM-7PM)
1580 S. Milwaukee Ave, Suite 607
Libertyville, IL 60048

Round Lake (847-201-1521)
6 E. Main St
Round Lake Park, IL 60073

Waukegan (847-377-3552)
415 W. Washington St, Suite 106
Waukegan, IL 60085
For help with your packet call the Affordable Housinig Corporation of Lake County (AHC) at 847-796-8050

For questions about the program call 847-377-3552
http://www.ahclc.org/saveyourhome.html
https://secure.ssa.gov/RIL/SiView.do
For more help, call 1-800-772-1213
(TTY 1-800-325-0778)
Monday through Friday from 7 a.m. to 7 p.m.

Must Have Actual Award Letter
Full transcript